Does Greater Inequality Lead to More Household Borrowing? New Evidence from Household Data

We are grateful to Meta Brown and Donghoon Lee for helpful comments about the data, and seminar participants at the Richmond Fed, St. Louis Fed, and CES-Ifo conference. The views expressed here are those of the authors and do not reflect those of the Federal Reserve Bank of Richmond or the Federal Reserve System or any other institution with which the authors are affiliated. Mondragon thanks the Richmond Fed for their generous support while part of this paper was written. Gorodnichenko thanks the NSF and Sloan Foundation for financial support. The views expressed herein are those of the authors and do not necessarily reflect the views of the National Bureau of Economic Research, the Federal Reserve Bank of Richmond or the Federal Reserve System.